Do Tax Amnesties Work? The Revenue Effects of Tax Amnesties during the Transition in the Russian Federation
Governments of all kinds have frequently and increasingly turned to tax amnesties as part of their fiscal programs. An amnesty typically allows individuals or firms to pay delinquent taxes without being subject to some or all of the financial and criminal penalties that the discovery of tax evasion normally brings. Tax amnesties are a controversial revenue-raising tool. Advocates emphasize the immediate and short-run revenue impact, and often argue that future tax revenues may increase if the amnesty induces individuals or corporations not on the tax rolls to participate, and if the amnesty is accompanied by more extensive taxpayer services, better education on taxpayer responsibilities, and, especially, stricter post-amnesty penalties for evaders and greater expenditures for enforcement. Critics contend that the actual experiences of many countries indicate that the immediate impact on revenues is almost always quite small. They also question the long-run revenue impact of a tax amnesty, especially if honest taxpayers resent the special treatment of tax evaders and if individuals come to believe that the amnesty is not simply a one-time opportunity. This paper discusses the multiple tax amnesties enacted in the Russian Federation during its main transition period of the 1990s and, especially, analyzes the impact of these amnesties on tax collections. We find that these amnesties had little short- or long-term impact on revenues. We conclude that the Russian amnesties, like most other amnesties, seem unlikely to have had significant positive – or negative – impacts on the revenues of the Russian Federation , a conclusion that calls into question their usefulness as a policy instrument.
|Date of creation:||01 Aug 2007|
|Contact details of provider:|| Phone: 404-413-0235|
Web page: http://aysps.gsu.edu/isp/index.html
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ntj:journl:v:53:y:2000:i:n._2:p:273-98 is not listed on IDEAS
- Alm, James & McKee, Michael J. & Beck, William, 1990. "Amazing Grace: Tax Amnesties and Compliance," National Tax Journal, National Tax Association, vol. 43(1), pages 23-37, March.
- Stella, Peter, 1991. "An economic analysis of tax amnesties," Journal of Public Economics, Elsevier, vol. 46(3), pages 383-400, December.
- G. Alfandari & M.E. Schaffer, 1996. ""Arrears" in the Russian Enterprise Sector," CERT Discussion Papers 9608, Centre for Economic Reform and Transformation, Heriot Watt University.
- Martinez-Vazquez, Jorge & McNab, Robert M., 2000. "The Tax Reform Experiment in Transitional Countries," National Tax Journal, National Tax Association, vol. 53(2), pages 273-298, June.
- Jorge Martinez-Vazquez & Mark Rider & Sally Wallace, 2008. "Tax Reform in Russia," Books, Edward Elgar Publishing, number 2368.
- repec:ntj:journl:v:46:y:1993:i:no._1:p:53-60 is not listed on IDEAS
- repec:ntj:journl:v:43:y:1990:i:no._1:p:23-37 is not listed on IDEAS
- Fisher, Ronald C. & Goddeeris, John H. & Young, James C., 1989. "Participation in Tax Amnesties: The Individual Income Tax," National Tax Journal, National Tax Association, vol. 42(1), pages 15-27, March.
- repec:ntj:journl:v:42:y:1989:i:no._1:p:15-27 is not listed on IDEAS
- Jeffrey A. Dubin & Michael J. Graetz & Louis L. Wilde, 1992. "State Income Tax Amnesties: Causes," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 1057-1070.
When requesting a correction, please mention this item's handle: RePEc:ays:ispwps:paper0718. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Benson)
If references are entirely missing, you can add them using this form.